Southard Financial wants to keep you up to date on the debate.
As we explained in September, the IRS recently proposed sweeping new changes in Section 2704, which covers the treatment of valuation discounts. These discounts are a powerful estate-planning technique that high-net-worth families have traditionally used to protect assets that are transferred as gifts or bequests to heirs. The public comment period, which ended on November 2, was followed by public hearing before a panel of representatives from the Department of the Treasury and the IRS in Washington, D.C. on December 2.
Following are highlights from that hearing, as reported by Peter H. Agrapides, MBA, CVA, on behalf of the National Association of Certified Valuators and Analysts (NACVA).
You’ve probably heard more than one pithy statement about planning:
The 17th century Spanish writer Cervantes stated, “To be prepared is half the victory.”
Winston Churchill declared, “He who fails to plan is planning to fail.”
Management expert and author Lester R. Bittel wrote, “Good plans shape good decisions.”
While they might sound simplistic, these famous quotations are crucial reminders that, in business as in life, you must plan well — and well in advance — if you want to reach your goals. This may never be truer than when the future of your company or family business is on the line.
A little over two years ago, the Department of Labor (DOL) announced a $5.25 million settlement with GreatBanc Trust Co., resolving allegations that GreatBanc had violated the Employee Retirement Income Security Act in its management of the Sierra Aluminum Co. Employee Stock Ownership Plan (ESOP).
GreatBanc and its insurers agreed to pay almost $500,000 in civil penalties, with the rest of the settlement being paid into the Sierra Aluminum ESOP.
Southard Financial wants you to know what’s at stake.
On August 2, the IRS proposed sweeping new changes in the treatment of valuation discounts — discounts that are used to reduce burdensome estate and gift taxes by transferring valuable property into special entities such as family-owned partnerships or corporations.
If the proposed Section 2704 regulations go into effect as written, high-net-worth families will lose a powerful estate-planning technique that has been used for decades to protect assets that are transferred as gifts or bequests to heirs.
“Individuals and organizations that are good, react quickly to change. Individuals and organizations that are great create change.”
— Robert Kriegel Sacred Cows Make the Best Burgers
At Southard Financial, we get it.
Your company is constantly dealing with change — in the industry, in the marketplace, within your customer base.
Maybe you’re looking to seek out new partners and/or capital for expansion and growth. Perhaps it’s time to add to, or sell off, part of your portfolio. Or this might be the time to acquire a new company, or sell yours.
Southard Financial facilitated the sale of Memphis' own TOPS Bar-B-Q chain
David A. Harris and Matthew L. Jakes spoke at the 2019 Spring Workshop of the New South Chapter of The ESOP Association
David A. Harris and Matthew L. Jakes spoke at the 2019 Spring Workshop of the New South Chapter of The ESOP Association held in Atlanta, Georgia in February, 2019 on the topic of “Valuation Appraisal Checklist – 10 Things Your ESOP Appraiser Should be Doing”
David A. Harris spoke at The Fall ESOP Forum of the NCEO
David A. Harris spoke at The Fall ESOP Forum of the NCEO (National Center for Employee Ownership) held in Albuquerque, New Mexico in October, 2018 on the topic, “Communicating Valuation: Tools, Tips, and Examples”.
Southard Financial negotiated the sale of and was the exclusive financial advisor to Southern Systems, Inc.
David A. Harris spoke at the 2018 Annual Fall Conference of the New South Chapter of The ESOP Association
David A. Harris spoke at the 2018 Annual Fall Conference of the New South Chapter of The ESOP Association held in Birmingham, Alabama in September, 2018. He led a workshop called “The People’s Roundtable Interactive Workshop – A series of ‘Build to Last’ activities that focus on developing successful communication and team building programs for employee owners of all generations.” Speakers included Dolores Lawrence, Blue Ridge ESOP Associates; Lindsay Baublitz, SCandH Capital; David Harris, Southard Financial LLC
Mark A. Orndorff spoke at the ESOP Nuts & Bolts Seminar of the NCEO
Mark A. Orndorff spoke at the ESOP Nuts and Bolts Seminar of the NCEO (National Center for Employee Ownership) held in Indianapolis, Indiana in August, 2018 on the topic of “What’s Your Company Worth? – ESOP Valuation.”
Southard Financial helps Transnetyx expand with growth capital
Mark A. Orndorff spoke at the American Booksellers Association Winter Institute
Mark A. Orndorff spoke at the American Booksellers Association Winter Institute 2018 held in Memphis, TN in January, 2018 on the topic of Succession Planning titled “What is Your ‘End Goal’?”
